### Calculations of the Time Value of Money

1) You invest $20,000 today, at a rate of 10% compound quarterly. What will the investment be worth at the end of year twenty? 2) You are offered an annuity that will pay you $9,000 at the end of each of the next 10 years. What is the maximum amount you would be willing to pay today for this annuity? (Assume you require a